Shiba Inu (SHIB) is showing signs of strength, rising more than 16% in the last week of April. Despite a challenging year for meme coins, SHIB is holding up better than major competitors like BONK, PEPE, and DOGE.
Its strong correlation with Bitcoin at 0.82 indicates that it could gain additional benefits if Bitcoin continues its rise. If momentum increases, SHIB could be poised for a significant rally, potentially retesting price levels that haven't been seen since the end of 2021.
SHIB Performs Better Than Other Meme Coins Amid Market Volatility
This year has been challenging for meme coins overall, with 9 out of the 10 largest trading in the red zone.
Shiba Inu has decreased by 33.11%, but it has shown somewhat better performance than other major meme coins like BONK, PEPE, and DOGE, which have experienced even deeper corrections.
While SHIB's losses are still significant, its relative resilience could put it in a more favorable position if sentiment in the sector begins to change. If the broader crypto market rebounds in the second quarter, SHIB could benefit along with the entire meme coin sector. Meme coins are known for their exaggerated movements — large meme coins tend to show even greater percentage gains when the crypto market rises.
However, they also tend to experience sharper corrections when the market weakens. If momentum returns, SHIB could be one of the first meme coins to react strongly to the renewed interest of investors in risk.
SHIB Could Benefit from Bitcoin's Momentum as Correlation Reaches 0.82
Shiba Inu has a strong correlation with Bitcoin (BTC), currently at 0.82.
As Bitcoin gains momentum in the second quarter, this high correlation could also position SHIB for a strong rally.
Over the past seven days, Bitcoin has risen by more than 10%, while SHIB has climbed by over 16%. This suggests that SHIB is already responding more aggressively to positive price dynamics in Bitcoin. If Bitcoin continues to rise and exceeds the $100,000 mark — a level that many analysts consider possible for the second quarter — it could trigger new historical highs for the broader crypto market.
In such a scenario, SHIB could become one of the biggest beneficiaries among major meme coins.
Given its high beta and strong correlation with Bitcoin, a significant breakout in Bitcoin is likely to amplify SHIB's gains, making it an important token to watch in the coming weeks.
Shiba Inu (SHIB) needs to rise by 182% to return to the highs of 2021
During the last major rally, Shiba Inu showed impressive results, increasing by 157% from September 18 to December 11, 2024.
This jump reflected a combination of stronger Bitcoin momentum, a resurgence of hype around meme coins, and broader retail investor participation. The price of SHIB has shown that once momentum builds, its rallies can accelerate quickly, often outpacing the overall market. If SHIB enters a new growth cycle, fueled by interest in meme coins and Bitcoin's rise, it will need to increase by about 182% to retest the $0.000040 level.
This will be the first time SHIB reaches this price since December 2021. Given its history of sharp rallies, once momentum starts to kick in, SHIB could be well-positioned if the market environment remains bullish.#Write2Earn #BinanceSquare #Binance #crypto #EthereumFuture $SHIB
